I would be surprised if you can get conventional financing.  

Yes, it can get eaten up but only year-end you will truly know if those will get eaten up.It is important to make sure your books are accurate so when it's time for tax filing, you won't be surprised if you owe or not.

MAKE AN OFFER ON EVERY PROPERTY YOU LOOK AT - you will be surprised at some of the deals you will make and the negotiations you will open.

You will likely be surprised at the people in the room at a REIA that have tons of money looking to deploy.

Owner financing is always a great option it is just a matter of education, if you can explain to them the benefits and lay out in a simple to see way how much more money they will make in the long run, you would be surprised at the terms people will agree too.

I was surprised there wasn't an entire chapter in the zoning code on how to convert a detached garage into a second dwelling almost anywhere in the city.

Despite being aware of the initial no-repair status, I opted for a home inspection, which yielded pleasantly surprising results with minimal concerns, primarily cosmetic.

EDUCATE YOURSELF - yes, it will take time, but will lead to a selection that better meets your expectations & avoids potentially costly surprises!

They're incentivized to make/save as much as possible from the deal so I wouldn't be surprised if they aimed to cut costs in a situation like this. 

You may know this already, but out-of-state investors are also sometimes surprised by Texas’ “high” property tax rate (but no personal income tax).